Royalty interest is in T150, R102. Zavanna is permitted to drill a 3 mile lateral well pooling 6 sections. Received an offer from a company in CO to “acquire your producing minerals or royalties… up to $131,250.00 total consideration.”
Anyone else receive this? Thoughts?
How many net mineral acres do you have? Does Zavanna have your minerals leased? I would be very reluctant to sell when drilling is imminent. This is an area of very good wells.
Thank you for replying! That is the million dollar question. The funds for the current well(s) on the property are in suspense. The original rights were my mom’s, then my dad’s. He passed almost 3 years ago and honestly, I haven’t had them transferred over. We have a call in to an attorney in ND and have been researching ourselves and with a friend who is a petroleum engineer. But I don’t know that anything will be certain until we can get everything transferred into my name. Messy (and lazy) on my part, I know.
Many of the sections in that township are held by one well. Most buying companies want the royalties from the producing wells and are aware of pending infill drilling. For example, Chord Energy has a surface location in 14-150N-103W drilling five infill wells to the north and five more to the south.
Would encourage you to get the royalties that are due you into your name.
Please note that the initial letter says “up to $131,250.00.” Up to is not the same thing as $131,250.
Thank you! I’ve been talking to several petroleum engineers who have been very helpful. It was drilled (pun intended) into my head by family to NEVER sell mineral rights. It’s looking like it may have been a lowball offer anyway. I was hoping someone else in the area had some more insight!
Thank you for your reply. Working to get an attorney and intro probate asap.